Saturday, December 17, 2011

New House Appropriation Bill

The House passed a bill that claims to have cut spending:

"The passage of this bill marks the second year in a row that Congress has cut discretionary spending – the first time this has occurred in modern history. Once the legislation has been passed by the Senate and signed by the president, the government will have saved nearly $31 billion in total discretionary spending compared to last year’s level and $95 billion compared to FY 2010 – the last year Democrats controlled Congress.

“The Appropriations Committee has been successful in making real and meaningful cuts in government spending. For two years in a row, we have shown our commitment to the American people to change spending habits in Washington to help get our budgets back into balance,” Chairman Rogers said."

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My comment:  I wish this were true.  The first problem I have is how do they define "discretionary spending".  I thought discretionary spending was everything except for Social Security, Medicare, Medicaid and Interest.  They say the baseline for discretionary spending is 1.043 trillion, down from last year's 1.050 trillion.  By my calculation, last year's discretionary spending was 1.857 trillion.
The second problem I have is that they claim that discretionary FY2011 spending was 64 billion less than FY2010 spending.  By my calculation, FY2011 discretionary spending was 48 billion more than FY2010 spending. 

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